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New Delhi: Global stock markets plunged after US President Donald Trump reaffirmed that tariffs on Canada and Mexico would take effect as scheduled, sparking fears of a trade war across North America.
What Trump Announced
- 25% tariffs on Canadian and Mexican imports starting March 4 after a 30-day pause.
- Tariffs on all Chinese imports increased to 20% as a response to Beijing’s alleged failure to curb fentanyl shipments to the US.
- No negotiations or exemptions, saying, “They’re going to have to have a tariff.”
Market and Economic Fallout
- US stocks plummeted:
- Dow Jones fell 649.67 points (-1.48%).
- S&P 500 lost 104.78 points (-1.76%).
- Nasdaq sank 497.09 points (-2.64%).
- Asian and European markets followed suit: Tokyo’s Nikkei 225 dropped 2.43%, while Hong Kong and Sydney markets also fell.
- Automakers hit hard: General Motors fell 4%, Ford 1.7%, as North American supply chains brace for disruptions.
- Indian markets are expected to open lower, with Nifty projected to drop nearly 1%.
Canada, Mexico, and China Respond
- Mexico’s President Claudia Sheinbaum: “Mexico has to be respected. We have plans B, C, and D.”
- Canada’s retaliation warning: Ontario Premier Doug Ford vowed to halt nickel shipments and electricity exports to the US.
- China’s countermeasures: Expected tariffs on US agriculture and food products.
Experts Warn of Economic Damage
Economists fear these tariffs could raise inflation and push the global economy toward recession. The automotive sector, heavily reliant on cross-border supply chains, may see price hikes within days.
As Trump pushes for “reciprocal tariffs” to match other nations’ trade barriers, concerns grow over escalating trade tensions and long-term economic instability.
